Microeconomics

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Where are you headed? & No matter what your career, you will need to understand how economic forces affect you and your work. & Hubbard/O& rs" Brien, Microeconomics 1/e gives you the motivation and the tools to understand those forces. & You& rs" re on your way. &

Preface

p. iv

Acknowledgments

p. xvii

Introduction

Economics: Foundations and Models

What Happens When U.S.Firms Move to China?

Building a Foundation: Economics and Individual Decisions

People Are Rational

People Respond to Economic Incentives

Optimal Decisions Are Made at the Margin

Solved Problem 1-1: Apple Computer Makes a Decision at the Margin

The Economic Problem That Every Society Must Solve

What Goods and Services Will Be Produced?

How Will the Goods and Services Be Produced?

Who Will Receive the Goods and Services Produced?

Centrally Planned Economies versus Market Economies

The Modern Mixed Economy

Efficiency and Equity

Economic Models

The Role of Assumptions in Economic Models

Forming and Testing Hypotheses in Economic Models

Making the Connection 1-1: When Economists Disagree: A Debate over Outsourcing